Payment in Pizza: Fair Work Ombudsman v Zillion Zenith International Pty Ltd [2014] FCCA 433
Friday 13 June 2014 @ 11.06 a.m. | Industrial Law
In the recent case of Fair Work Ombudsman v Zillion Zenith International Pty Ltd [2014] FCCA 433, two Melbourne restaurants, both part of the La Porchetta chain, were fined $335,000 for paying 111 teenaged employees in pizza and softdrink instead of their correct wage and entitlements.
Facts
The Fair Work Ombudsman began investigating the La Porchetta franchises after receiving a single complaint from a parent of one young staff member.
It subsequently found that 59 employees at Pakenham had been underpaid a total of $130,195 and 52 employees at Berwick had been short-changed $127,824.
The Federal Circuit Court heard Chand had paid young cooks, kitchen hands and waiters below minimum wage and withheld annual leave entitlements. A number were employed under training programs which enabled Chand's companies to claim more than $45,000 in Commonwealth benefits.
The court was told that Chand, of Tecoma, had claimed the employees were given half-priced pizza and soft drink, which was being "offset" against their wages and entitlements.
Federal Circuit Court Decision
In handing down his decision in the Federal Circuit Court, Judge John O’Sullivan said “such a practice belongs in the dark ages”.
“The contraventions themselves and the conduct of the respondents fundamentally hamstrung the ability to confirm the affected employees’ entitlements during the investigation, [and] the co-operation was less than forthcoming.”
There had been previous legal proceedings against the respondent for workplace law violation and, in this case, they were order to pay all amounts outstanding to the Commonwealth Government, to be held on behalf of the unpaid individuals, in line with Section 559 of the Fair Work Act 2009 (Cth).
Ombudsman Natalie James says the court's decision to impose such high penalties sent a strong message to others that exploitation of young and vulnerable workers "simply won't be tolerated".
The La Porchetta restaurant chain has entered into an agreement with Fair Work Australia to ‘‘assist compliance’’ of the pizza chain’s restaurants into the future.
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Sources:
Fair Work Ombudsman v Zillion Zenith International Pty Ltd [2014] FCCA 433 as reproduced on TimeBase LawOne and Federal Cases Products
